Monday, January 23, 2017

IL&FS disqualified from bidding for Guj project

The National Highways Authority of India (NHAI) has disqualified infrastructure major IL&FS for a Rs 1,200 crore highway project in Gujarat this month citing “potential conflict of interest“.The company has retired IAS officer R C Sinha as a non-executive independent director, who is also the adviser to highways minister Nitin Gadkari.Sinha holds this honorary post as he does not take any salary , though he has office and staff at his disposal at Transport Bhawan.NHAI also bears expenses on his stay when he is in Delhi.National Highways Authority of India (NHAI) has disqualified infrastructure major IL&FS for a Rs 1,200 crore highway project in Gujarat this month citing “potential conflict of interest“.

The company has retired IAS officer R C Sinha as a nonexecutive independent director, who is also the adviser to highways minister Nitin Gadkari. Sinha holds this honorary post as he does not take any salary , though he has office and staff at his disposal at Transport Bhawan. NHAI also bears expenses on his stay when he is in Delhi.

This is the second time that NHAI has disqualified companies on the same ground in less than a year for the same 93km highway project of NH-8. Last year NHAI had issued work order to Overseas Infrastructure Alliance and KMC Constructions for this project. But later it had found that Sinha was director and chairman of OIA, which was a clear case of conflict of inter est, officials said. Sources said the matter was referred to NHAI board, which has representatives from different ministries, and NHAI chairman was authorised to take a call.The contract was cancelled.

TOI has learnt that when the matter came before highways minister Nitin Gadkari, he had asked Sinha that he needed to make a choice between working with OIA and holding the honorary post in the ministry. Sinha resigned from the company in October . A statement issue by the company on October 1 said, “OIA 's director and chairman, Dr R C Sinha has stepped down from his position on the board with effect from October 1, 2016 to pursue his personal interests and commitments.“ Sources said while IL&FS has raised its concern with NHAI suspecting that the authority may use the same ground not to open their bids, Sinha has also written to Gadkari to end the “confusion“ over conflict of interest since he does not take a single `paisa' from government as salary.He has cited how NHAI was not opening bids of IL&FS.

Sinha did not respond to calls and SMS till the report was filed. Meanwhile, officials said Gadkari is likely to suggest Sinha make the choice between IL&FS and the honorary post he holds with his ministry.